TOKYO: Japan will spend about 989 billion yen (US$6.73 billion) from its reserve fund to cover energy subsidies designed to ease the burden on households, Finance Minister Shunichi Suzuki said on Tuesday.
Japan in June decided to extend gasoline fuel subsidies until the end of the year and to temporarily reintroduce relief on utility bills over the summer.
The gasoline subsidies have been available to fuel wholesalers since January 2022 to lower retail prices at gas stations nationwide. It has been extended seven times despite some criticism of its impact on public finances.
Speaking in a press conference, Suzuki said the subsidies should not be continued forever in light of their burden on government finances.
"We'll need to consider ways to smoothly exit while carefully monitoring the economic situation," he said.